Sumitomo Corporation Announces Grant of Stock Options
OREANDA-NEWS. Sumitomo Corporation (the “Company”) hereby announces that at a meeting held today, the Board of Directors resolved the terms regarding the distribution of new share acquisition rights in the form of stock options to the Company’s Directors, Executive Officers and Corporate Officers who qualify under the qualification system of the Company, in accordance with the provisions of Articles 236, 238 and 240 of the Company Law of Japan.
The distribution of new share acquisition rights to the Directors is subject to the approval of the proposition of “Change in Remuneration of the Company's Directors” at the Ordinary General Meeting of Shareholders scheduled for June 21,2013, and the distribution to Executive Officers and Corporate Officers is subject to the approval for the Directors.
1. The reason for the need to recruit persons to accept New Share Acquisition Rights
So as to increase the motivation and morale of the Company’s Directors, Executive Officers and employees and further expand our profit base and strengthen our corporate constitution, the Company wishes to be able to issue new share acquisition rights.
2. Name of the New Share Acquisition Rights
Sumitomo Corporation, the Twelfth Stock Acquisition Rights
3. Total number of New Share Acquisition Rights to be issued
The maximum total number of new share acquisition rights to be issued shall be 1,980. The maximum total number of rights to be allocated to the Directors shall be 530. (100 common shares for every new share acquisition right shall be issued. However, if adjustments are made to the number of shares as described in item 4. below, the same adjustments shall also be made here.)
The above total is the number of new share acquisition rights to be allotted. Where there is a decrease in the total number of new share acquisition rights to be allotted, such as when there are no subscriptions for some of the rights, the total number of new share acquisition rights to be issued shall be the total number of stock acquisition rights allotted.
4. Type and number of shares subject to New Share Acquisition Rights
The maximum number of shares subject to new share acquisition rights shall be 198,000 of the Company’s common shares, of which new share acquisition rights covering of 53,000 shares shall be allocated to the Company’s Directors.
If the Company conducts a stock split or reverse stock split, the number of shares shall be adjusted using the following calculation formula. This adjustment, however, shall only be conducted for the number of shares subject to the new share acquisition rights that have not been exercised at that time. Fractional shares resulting from the adjustment shall be rounded down.
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